UK Government to directly invest £140m in five areas of Scotland

Scottish Secretary Douglas Alexander said Glasgow will receive £60.9 million of the Local Growth Fund while Edinburgh will get £37.8 million. The Tay Cities region has been allocated £19.5million, Ayrshire £11.8 million and Forth Valley £9.8 million.

The Scotland Office said it will work with local partners such as councils to ensure the cash spurs on economic growth.

The money comes as part of UK Government plans to spend £2 billion on direct local investments over the next decade in Scotland.

Mr Alexander said the money could be used to improve regional infrastructure, provide business support or fund skills development.

He said: “The UK Government is today backing regional economies across Scotland with £140 million of new investment.

“This new investment will allow local leaders to decide how best to use the funding, which could include projects to improve infrastructure, business support or skills development.

“The UK Government will now work with local partners to develop investment plans tailored to each region.

“By investing in local areas, reducing child poverty, and bringing down inflation, the UK Government is focused on delivering material change to people across the country – boosting living standards and improving public services.”

It comes after the UK Government confirmed last month that 14 Scottish communities will receive ‘Pride in Place’ funding.

The areas will receive up to £20 million each over the next decade.

The £280m money is split across 12 local authorities. These are Aberdeen, Edinburgh, Falkirk, Fife, Glasgow, Highland, North Ayrshire, North Lanarkshire, South Ayrshire, South Lanarkshire, Western Isles and West Lothian are all to get money.

The money is intended to revitalise “overlooked” communities, with the money to be spent on high streets, parks and public spaces.

The funding starts from April this year.

In total, the UK Government is investing more than £2 billion over 10 years in dozens of local and regional projects in Scotland in a bid to stoke economic and community renewal.

These include the Local Growth Fund, Phase 2 of the Pride in Place Programme, the £12m Pride in Place Impact Fund, the £49m Growth Mission Fund, £200m support for ten Scottish towns (Pride in Place Phase 1) and £320m for the Glasgow City Region and North East Scotland Investment Zones.

There is also £52m for the Inverness and Cromarty Firth, and Forth Green Freeports, £81m for Community Regeneration Partnerships in Dundee, Scottish Borders, Argyll & Bute, and Na h-Eileanan Siar, £188m to complete Levelling Up Fund projects and £76m in UK Shared Prosperity Fund transition funding for 2025/26.

On top of this there is £60m innovation funding for Glasgow City Region (across the Innovation Accelerator 2025/26 and new Local Innovation Partnerships Fund), £17.3m for Energy Transition Zone, £5m for Community Ownership Fund projects, £2.6m for V&A in Dundee and £752m to deliver Scotland’s 12 City Region and Growth Deals over 2025/26 - 2034/35.

The Scottish Government has been contacted for comment.